Yen Falls Amid BoJ Rate Hike Uncertainty
05 Novembre 2024 - 7:24AM
RTTF2
The Japanese yen weakened against other major currencies during
the European session on Tuesday, as traders remain cautious amid a
rare political crisis following a Japanese snap election that
raises doubts about the Bank of Japan's capacity to raise interest
rates further and the U.S. election.
Former BOJ board member Makoto Sakurai said that the Bank of
Japan is likely to raise interest rates in coming months with
January emerging as the most likely timing, when there will be more
clarity on political and market developments.
By the end of Governor Kazuo Ueda's term in April 2028, the
central bank would eventually aim to increase short-term borrowing
costs, which are presently at 0.25%, to 1.5% or 2%, he added.
Investors reacted to mixed earnings updates and awaited
interest-rate decisions from the Bank of England and the Federal
Reserve later this week.
Meanwhile, all attention is focused on what is being called the
"closest race in history" of the 2024 U.S. Presidential election,
with Donald Trump facing off against Kamala Harris.
In the European trading today, the yen fell to a 4-day low of
176.61 against the Swiss franc, from an early high of 176.06. On
the downside, 178.00 is seen as the next support level for the
yen.
Against the euro and the pound, yen slid to 165.94 and 197.73
from early highs of 165.41 and 197.01, respectively. The next
possible downside target for the yen is seen around 170.00 against
the euro and 200.00 against the pound.
Against the U.S., the Australia, the New Zealand and the
Canadian dollars, the yen edged down to 152.55, 100.78, 91.38 and
109.75 from early highs of 152.09, 100.13, 90.84 and 109.42,
respectively. If the yen extends its downtrend, it is likely to
find support around 155.00 against the greenback, 102.00against the
aussie, 93.00 against the kiwi and 112.00 against the loonie.
Looking ahead, U.S. and Canada trade data for September and PMI
reports for October, are slated for release in the New York
session.
Grafico Cross Euro vs Yen (FX:EURJPY)
Da Nov 2024 a Dic 2024
Grafico Cross Euro vs Yen (FX:EURJPY)
Da Dic 2023 a Dic 2024